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Paulson On The “HOT” Seat

Posted by italco on July 16, 2009

Paulson

The hearing before the House Committee on Oversight and Government Reform was convened as part of an investigation into one episode in the crisis: the government’s push to secure the acquisition of Merrill Lynch by Bank of America. The companies struck a deal in September to merge without government aid but only completed the deal in January after the Treasury agreed to invest $20 billion and to help limit Bank of America’s losses on a portfolio of troubled loans.

Democrats on the committee have pursued the theory that Bank of America chief executive Kenneth D. Lewis manipulated the government into providing additional aid by threatening to walk. Republicans have countered that the government forced Bank of America to complete a deal the company no longer wanted.

“The problem is that while all of this was going on, the American people, investors and economists were kept in the dark,” the committee’s chairman, Rep. Edolphus Towns (D-N.Y.), said yesterday. “There was no oversight to determine whether this arrangement made sense. In my view, this is unacceptable and must be prevented from happening in the future.”

The committee increasingly is focused on internal Fed documents that appear to show that other regulatory agencies were intentionally kept out of the loop, including the Securities and Exchange Commission and an interagency panel created by Congress to coordinate the government’s response to the crisis, the Financial Stability Oversight Board. http://www.washingtonpost.com/wp-dyn/content/article/2009/07/16/AR2009071600190.html?hpid=sec-business

I am very happy to see our congress investigating the causes of our economic crisis. I am not surprised to see no one taking responsibility for their actions. That tells me the crisis was not an accident. If I held a position that was responsible for the well being of the financial security of an entire country and my screw up caused an entire system to fail, I would apologize.

Yet in his own words…our beloved, “Former Treasury secretary Henry M. Paulson Jr.” said, “No one was tougher than I was in trying to protect the American taxpayer”

If this is a correct statement, then why all the secrecy…why exclude all the professionals from the meetings?

You should be ashamed of yourself!

 

“Beat The Drum”

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3 Responses to “Paulson On The “HOT” Seat”

  1. Geonite said

    And don’t get me started on AIG.

  2. Geonite said

    I still think the government should have stayed out of these things and not bailed anyone out. I don’t mind the job stimulus but TARP and the auto bailouts disgust me.

  3. jruthkelly said

    Not to knock Obama (truly) but this is certainly not open and fair, is it? Sickens me how banking closes doors and hides processes connected to my money. There’s got to be a way for the common “nobody” to have a say in this nonsense.

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